Berlusconi Convicted of Fraud

Italy's Former Leader Will Likely Avoid Serving 1-Year Prison Sentence, but the Ruling Hurts His Party

By

Manuela Mesco and

Stacy Meichtry

Updated Oct. 26, 2012 7:54 p.m. ET

MILAN—A judge convicted former Premier Silvio Berlusconi for tax fraud related to his family media company's activities a decade ago, a verdict that hits the billionaire politician in the twilight of his career and leaves his conservative party to deal with the fallout ahead of elections next year.

Mr. Berlusconi faces a year in jail, but he is unlikely to serve the sentence, as prison terms in Italy aren't carried out until the...